Royal Bank of Scotland (RBS) is to issue polymer £5 and £10 notes when it prints its next generation of bank notes from next year.

RBS, the second largest issuer of banknotes in Scotland by volume, said both new notes will feature new design layouts, including new subjects for the portraits.

It anticipates the new £5 note will be issued in the second half of 2016, with the £10 note following a year later, in line with the timeframes for new polymer notes previously announced by the Bank of England, Clydesdale Bank and Bank of Scotland.

RBS said its new polymer notes will be 15 per cent smaller and will be printed on De La Rue’s Safeguard Polymer material.

Designs for the new £5 and £10 nots are expected to be partially unveiled “in the coming months”.

RBS said issuing polymer notes will reduce its costs as an issuing bank as the notes will be more durable than cotton paper notes are currently printed on, and will provide greater levels of security.

David Wheldon, chief marketing officer at the Royal Bank of Scotland, said: “It is very important that people have confidence in our banknotes.

“The move to polymer notes will bring significant benefits to all those who use them.

“They will be smaller, cleaner and more secure.

“I look forward to unveiling the new designs later in the year, following close collaboration with the Scottish public.”

RBS has been issuing banknotes since 1727 and says on average £1.5 billion of its notes are in circulation on any given day.